Petrol, Diesel prices slashed (Feb 2007)

In a bid to contain the inflation rate, the Government has slashed petrol and diesel prices by Rs 2 and Re 1 a litre, respectively. Effective from Friday 16. The decision was taken at a meeting, chaired by Prime Minister Manmohan Singh, earlier in the day.
In Delhi, the retail price of petrol would come down to 42.85 from 44.85 and of diesel to Rs 30.25 from Rs 31.25. In Kolkata, the prices would be cut by Rs 2.08 and Rs 1.04, in Mumbai by Rs 2.13 and Rs 1.14 and in Chennai by Rs 2.16 and Rs 1.19.

But now the state-owned oil companies loss on sale of diesel would increase to Rs 2.30 from 1.30 a litre. The companies which were earning a profit of Rs. 2 a litre on petrol, would be seen.